Financial Performance - The company reported a revenue decline of 14% for the fiscal year 2020 compared to the fiscal year 2019, primarily due to an 18.1% drop in revenue from the search engine marketing services segment [12]. - The company recorded a profit of approximately 5.7 million Singapore dollars for the fiscal year 2020, a decrease of about 56% compared to the previous fiscal year [13]. - The company's revenue for the fiscal year ended June 30, 2020, was SGD 24,742,000, a decrease of 14.3% compared to SGD 28,885,000 in the previous year [44]. - The main source of revenue, search engine marketing, accounted for approximately 77.5% of total revenue in the fiscal year 2020 [34]. - The company reported a pre-tax profit of SGD 3,278,000 for the fiscal year 2020, down from SGD 3,892,000 in the previous year [43]. - The net profit for the fiscal year 2020 was SGD 2,481,000, compared to SGD 2,695,000 in the previous year [43]. - Adjusted net profit for FY2020 was approximately SGD 2.5 million, a decrease of about 54.5% from SGD 5.7 million in FY2019 after excluding one-time listing expenses [61]. - Net profit for FY2020 was approximately SGD 2.5 million, down from SGD 2.7 million in FY2019, influenced by revenue decline and rising administrative costs [59]. Revenue Sources and Trends - The social media marketing services segment saw a revenue increase of 14.7%, partially offsetting the overall revenue decline [12]. - The company experienced a decline in revenue primarily due to the impact of the COVID-19 pandemic, which led to reduced advertising spending by clients [35]. - Despite the challenges, the company noted an increase in revenue from social media marketing services, indicating a shift in client preferences towards advertising on platforms like Facebook [35]. Client and Market Strategy - Despite the revenue decline, the company served nearly 500 active clients, highlighting the importance of a diversified client base [13]. - The company aims to leverage its 15 years of digital marketing and website design experience to capitalize on the rapid growth of online consumer activity [13]. - The company plans to continue promoting its marketing strategies to help clients expand their online presence in the evolving global landscape [13]. - The company remains committed to maintaining a stable financial position and increasing its market share in China [14]. - The company has expanded its client base into new industries and developed new services such as social media marketing and search engine optimization [18]. Business Development and Opportunities - The company is actively exploring business opportunities in the Greater China region, including a recent agreement to acquire a 20% stake in Majestic State International Limited [14]. - The company plans to continue investing in research and development to expand service offerings and explore new business opportunities, particularly in China and the Greater China region [38]. - The company aims to leverage the shift towards online business activities caused by the pandemic to create new opportunities for growth [38]. Operational Efficiency - The management team has improved efficiency by better coordinating with digital marketing, website, sales, customer relations, and administrative departments [18]. - The company has maintained its business operations and client marketing activities without disruption during the pandemic [38]. Financial Position and Equity - Total equity increased to approximately SGD 27.1 million as of June 30, 2020, from SGD 24.6 million as of June 30, 2019, primarily due to profits generated from operations [64]. - Current assets decreased to approximately SGD 18.3 million as of June 30, 2020, from SGD 23.0 million as of June 30, 2019, mainly due to a deposit payment of approximately SGD 7.2 million for strengthening technical infrastructure [64]. - The group's debt-to-equity ratio as of June 30, 2020, was 7.8%, down from 9.1% as of June 30, 2019, primarily due to retained earnings growth [74]. Governance and Board Structure - The board consists of six directors, with non-executive and independent non-executive directors making up two-thirds of the board members [88]. - The company has three independent non-executive directors, meeting the requirement that they must constitute at least one-third of the board [88]. - The board has adopted a diversity policy to ensure a balanced skill set and diverse perspectives among its members [98]. - The company provides training for directors to enhance their knowledge and skills related to their responsibilities [92]. - The board meets at least four times a year, with a minimum of 14 days' notice for meetings [93]. Risk Management and Compliance - The board is responsible for assessing the nature and extent of risks acceptable in achieving strategic objectives and ensuring the establishment of effective risk management and internal control systems [129]. - An independent internal control consulting firm was appointed to evaluate the internal control system, which included financial, operational, and compliance monitoring, and recommended several improvement measures that were adopted by the company [129]. - The company has implemented a fair disclosure policy to ensure the public is informed through financial reports and announcements, adhering to the regulations set forth by the Securities and Futures Ordinance [133]. Shareholder Engagement and Communication - The company allows shareholders to propose motions at general meetings, requiring a written request to the board or company secretary [138]. - The company has a communication policy to ensure shareholders receive timely information to exercise their rights [145]. Environmental and Social Responsibility - The company has implemented various environmental measures and encourages employees to practice energy conservation and waste reduction [156]. - The company made charitable donations of approximately SGD 38,000 during the fiscal year 2020 [168]. Future Plans and Investments - The company plans to acquire a website development and hosting company with an allocation of HKD 26.20 million (28.5%) from the net proceeds [175]. - The company has set aside HKD 5.30 million (5.7%) for establishing a sales office in Johor Bahru, Malaysia, although this plan is under reconsideration due to the COVID-19 pandemic [175][176].
秀商时代控股(01849) - 2020 - 年度财报